Prices accelerated on the downside after the Fed announced it may start to reduce its bond purchase program towards the end of the year. This kind of announcement is a manner to test the reaction of the stock market and the nerves of market participants. This is nothing else than psychology, the driving force of the financial markets. 

As mentionned in our previous comments, internal momentum has started to deteriorate: the list of stocks hitting fresh new 52 weeks lows is expanding on the Nasdaq and on the NYSE. Our short term trading model has started to turn down, hedging activity in the options market has increased during the month of August, whereas the sentiment of private investors is neutral. 

Very short term oscillator	negative -
Short term oscillator	negative -
RVI trend	negative -
Trend short term (5 days)	Down ​​
Trend mid term (8 days)	Down ​​
Differential of trends	Up ​​
Risk profile6	54 (scale of 1 (low risk) to 100 (high risk))